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Amendments to state regulation procedures in coal mining

July 26, 2010

Dmitry Medvedev signed Federal Law to regulate safe operation of mining activities when mining coal and oil shale.

The Federal Law states that during coal and oil shale mining, it is obligatory to ensure ventilation and degassing in the mines, while degassing is defined as works to extract and release explosive gases to reduce their levels in the mines, coal beds, and mine goafs, to the set safe levels.

The Federal Law improves the state regulation procedures for safe mining operations during coal and oil shale mining. In particular, the Government of the Russian Federation is required to set acceptable levels of explosive gases in mines, coal beds, and mine goafs.

It is provided that measures for reducing explosive gas levels in mines, coal beds, and mine goafs during coal and oil shale mining should be stated in the subsoil license.

The Law also establishes administrative responsibility for failure to comply with requirements for degassing efforts during coal and oil shale mining.

* * *

Dmitry Medvedev instructed Prime Minister Vladimir Putin to submit by November 1, 2010, proposals on amending Russian Federation legislation so as to create mechanisms for effective implementation of the provisions of the Federal Law On Amendments to Articles 1 and 14 of the Federal Law on State Regulation of Coal Production and Use, and Specific Features of Social Protection for Workers of Coal Industry Enterprises, and to certain legislative acts of the Russian Federation.

It is imperative to consider issues related to extra payments to the miners in addition to their regular wages during idle periods caused by degassing operations, and to include these and other reasonable degassing costs in the list of production and sales related expenses.

July 26, 2010